India’s foreign exchange reserves jumped by $14.167 billion to $701.36 billion during the week ended January 16, according to the latest data from the RBI. The overall reserves had increased by $392 million
to $687.193 billion in the preceding week.
Value of the gold reserves jumped by $4.623 billion to $117.454 billion during the week, the RBI said.
The reserves climbed to an all-time high of $704.89 billion in September 2024, but have been under pressure lately, especially as the currency buffers get deployed to check undue volatilities in the rupee.
During the week ended January 16, foreign currency assets, a major component of the reserves, jumped by $9.652 billion to $560.518 billion, the data released by the central bank showed.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
The special drawing rights (SDRs) were down by $35 million to $18.704 billion, the apex bank said.
India’s reserve position with the IMF was also down by $73 million to $4.684 billion in the reporting week, according to the apex bank’s data.
The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.
After the last monetary policy review meeting, the RBI had said that the country’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. Overall, India’s external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements.
In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, reserves rose by just over $20 billion. So far in 2025, the forex kitty has increased by about $47-48 billion, according to data.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
